Markets Await Cemex Results

Markets Await Cemex Results

August 21, 2012

Cemex is expected to announce the results of its offer to creditors as soon as today, following Monday’s deadline, as it seeks to extend maturities of $7bn in debt to 2017 from 2014. In a process launched last month, the Mexican cement maker is offering lenders an exchange of their current exposure into one or more of new 9.5% 2018 bonds, new loans paying Libor+525bp, new USD private placement notes paying 9.66%, or new yen-denominated private placement notes paying 7.735%. The interest rates on the loans and private placement notes reduce over time based on prepayment targets. The proposed 2018 bonds are capped at $500m, callable in 2016 and guaranteed by more than seven Cemex units. Participating creditors receive an exchange fee of 80bp, and a 50bp additional cash fee if the Cemex ADS exceeds US$14.50 during the 90 days after April 1, 2015. The offer is contingent upon acceptance from creditors representing at least 95% of existing exposures.

Cemex is expected to announce the results of its offer to creditors as soon as today, following Monday’s deadline, as it seeks to extend maturities of $7bn in debt to 2017 from 2014. In a process launched last month, the Mexican cement maker is offering lenders an exchange of their current exposure into one or more of new 9.5% 2018 bonds, new loans paying Libor+525bp, new USD private placement notes paying 9.66%, or new yen-denominated private placement notes paying 7.735%. The interest rates on